Dividing Line My Resident is your Non-Resident

Dividing Line: My Resident is your Non-Resident

Why do Governments make such a big deal about determining if a person is a Resident or Non-Resident?

The simple answer is that this parameter ic used to classify the potential source of taxable income and capital. Based on the binary answer provided for this parameter, many countries have different taxation rules that will apply for each group.

It addition, this parameter helps countries identify the taxable source status of people that operate within multiple jurisdictions, ergo one countries non-resident may be a different countries Resident. Both countries will take an active role in tracking and possibly taxing the income, capital, estate taxes associated with the person in question.